Toronto Real Estate Market Report ~ September 2024 | Shifts in Sales, Prices, and Opportunities

The Greater Toronto Area (GTA) real estate market continued to see changes in September 2024, with a noticeable increase in sales and a healthy supply of new listings. For those considering a move—whether buying, selling, or investing—understanding the latest trends can help you navigate this dynamic market.

Affordable Conditions and Increased Sales

In September, GTA home sales rose by 8.5% year-over-year, with a total of 4,996 transactions. As the Bank of Canada lowered interest rates and changes to mortgage lending guidelines were introduced, many buyers found themselves in a more favourable position to enter the market. According to TRREB President Jennifer Pearce, each rate cut opens doors for more buyers, especially first-time home buyers, as the lower borrowing costs make home ownership more accessible.

A Surge in Listings and Price Adjustments

Alongside the increase in sales, new listings grew by 10.5%, bringing the total to 18,089. This increase in supply has resulted in more negotiating power for buyers, especially as prices have moderated slightly. The MLS® Home Price Index Composite benchmark fell by 4.6% compared to last year, while the average selling price was down by 1%, settling at $1,107,291.

As TRREB Chief Market Analyst Jason Mercer noted, this better-supplied market has provided first-time buyers with increased negotiating power. This trend was particularly evident in the more affordable segments—condo apartments and townhouses—where moderate price declines were observed.

Sales and Average Prices by Home Type

Here’s a breakdown of sales and average prices across different home types in the GTA for September 2024:

• Detached Homes:
  • Sales: 2,354 (599 in the 416 area, 1,755 in the 905 area)
  • Average Price: $1,423,056 ($1,685,755 in 416, $1,333,394 in 905)
  • YoY Sales Change: +10.5% (+10.1% in 416, +10.7% in 905)
  • YoY Price Change: -1.1% (-2.4% in 416, -0.5% in 905)
• Semi-Detached Homes:
  • Sales: 446 (180 in 416, 266 in 905)
  • Average Price: $1,090,749 ($1,299,324 in 416, $949,609 in 905)
  • YoY Sales Change: +12.6% (+13.2% in 416, +12.2% in 905)
  • YoY Price Change: -0.4% (+1.3% in 416, -2.0% in 905)
• Townhouses:
  • Sales: 840 (158 in 416, 682 in 905)
  • Average Price: $904,200 ($978,343 in 416, $887,023 in 905)
  • YoY Sales Change: +14.3% (-8.7% in 416, +21.4% in 905)
  • YoY Price Change: -4.0% (-1.7% in 416, -4.1% in 905)
• Condo Apartments:
  • Sales: 1,312 (864 in 416, 448 in 905)
  • Average Price: $682,543 ($707,917 in 416, $633,606 in 905)
  • YoY Sales Change: +0.8% (+2.2% in 416, -2.0% in 905)
  • YoY Price Change: -3.6% (-3.5% in 416, -4.1% in 905)

Year-Over-Year Summary (September 2024)

• Total Sales: 4,996 (2024) vs. 4,606 (2023), an increase of 8.5%
• New Listings: 18,089 (2024) vs. 16,377 (2023), an increase of 10.5%
• Active Listings: 25,612 (2024) vs. 18,906 (2023), an increase of 35.5%
• Average Price: $1,107,291 (2024) vs. $1,118,215 (2023), a decrease of 1.0%
• Average LDOM (Listing Days on Market): 27 days (2024) vs. 20 days (2023), an increase of 35.0%
• Average PDOM (Property Days on Market): 43 days (2024) vs. 30 days (2023), an increase of 43.3%

New Lending Guidelines and Buyer Flexibility

With recent updates to mortgage lending rules, existing mortgage holders now have the ability to shop around for better rates without facing the stress test. This change, along with extended amortization periods and options to insure mortgages over $1 million, gives buyers more flexibility. TRREB CEO John DiMichele emphasized that these changes could provide buyers with increased affordability and choice, which is essential as the GTA market continues to recover.

The Bottom Line: A Buyer’s Market with Growth Potential

For buyers, sellers, and investors alike, September 2024 has brought about more favourable conditions. The increase in listings, coupled with more affordable borrowing, has created a market where buyers have the upper hand, especially in negotiations. This could be an ideal time for first-time buyers or those looking to upgrade, as the market provides more options and the potential for long-term value.

As interest rates continue to adjust and lending guidelines offer more flexibility, the GTA real estate market is positioned for gradual growth. Whether you’re entering the market or considering your next investment, staying informed on these trends will help you make the most of this evolving landscape.

Have any questions about the marketplace? Feel free to reach out on Instagram @TorontoRealEstate.ca !

Rylie C.